Frank Lozinski

[Frank Lozinski @franklozinski_]

@pranavmulgund Loop me in

[Jason ✨👾SaaStr.Ai✨ Lemkin @jasonlk]

"Anthropic delivers a highly detailed summary for every sales call before they show up to it.

And makes sure every AE follows up on every single commit, by extracting action items from calls, Gong, @salesforce, @SlackHQ + more.

It summarizes everything every AE needs to do, and reminds the AE every single day what they still haven't done yet." -- Eleanor Dorfman, Head of Industries, Anthropic

[Scott Stevenson @scottastevenson]

It’s time to expose a huge scam in AI startups: Contracted ARR

The reason many AI startups are crushing revenue records is because they are using a dishonest metric

The biggest funds in the world are supporting this and misleading journalists for PR coverage.

The setup: Company signs 3-year enterprise deals. Year 1 is discounted (say $1M), Year 2 steps up ($2M), Year 3 is full price ($3M).

They report $3M as “ARR” — even though they’re only collecting $1M right now.

The worst part: The customer has an opt-out option at 12 months! It’s not actually a 3 year contract.

In the chart below, by Q5 the company is trumpeting ~$100M “ARR” to press, while actual cash-generating, in-effect ARR is ~$35M. That’s ~3x inflation.

On top of this, enterprise AI companies are bundling full-time “forward deployed engineers” into deals massively reducing margins, sometimes producing Year 1 negative margins.

At some point customers are going to start triggering their opt-out clauses or aggressively negotiating down Year 3 pricing.

And a wave of enterprise AI companies may collapse.

[Akash Pavan / Chasi @akashpavan]

Working as a salesperson at Anthropic is like taking orders at Shake Shack.

[Frank Lozinski @franklozinski_]

@vuoriclothing Miami